27 Views

Question : Assertion (A): Currency money is also termed as Fiat money.

Reason(R): Under law, currency must be accepted for payment for all debts.

Option 1: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason(R) are true, but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true, but Reason (R) is false.

 

Option 4: Assertion (A) Is false, but Reason (R) is true.


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)


Solution : The correct answer is (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Assertion is termed as Fiat money, which is true. Fiat money refers to money that has value because the government declares it to be legal tender, not because it is backed by a physical commodity like gold or silver.

Reason is also true, as legal tender laws require creditors to accept currency as a form of payment.

Therefore, both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains Assertion (A).

Related Questions

Amity University, Noida | Law...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Manav Rachna University Law A...
Apply
Admissions open for B.A. LL.B. (Hons.), B.B.A. LL.B. (Hons.) and LL.B Program (3 Years) | School of Law, MRU ranked No. 1 in Law Schools of Excelle...
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC | Ranked 33rd by NIRF 2025
UPES Integrated LLB Admission...
Apply
Ranked #18 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS Rankings | 16 LPA Highest CTC
Jain University, Bangalore - ...
Apply
NAAC A++ Approved | Curriculum Aligned with BCI & UGC
Amity University, Mumbai Law ...
Apply
Ranked as India’s #1 Not for profit pvt. University by India Today
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books